Redback gets lift on Verizon deal

SAN JOSE, Calif. (CBS.MW) - Shares of Redback Networks got a small jolt in an otherwise dismal market after the company said it signed an equipment contract with Verizon.

Redback said Verizon "has extended deployment" of the company's subscriber management system, which enables phone carriers to add to and manage large numbers of customers on their high-speed networks. See news release.

Early on, the news boosted Redback
RBAK
shares. The stock rose as much as 7 percent before ending the day with a gain of 10 cents to $3.71, a 2.8 percent increase.

While the company did not disclose terms of the contract, any deal with a Baby Bell is seen as a positive step by investors. The Bells are the biggest U.S. purchasers of telecom equipment and are among the few companies still spending large sums amid the industry's slump.

Telecom analysts say most small phone-equipment companies that want to survive need to strike deals with the Baby Bells.

In January, Redback posted a fourth-quarter net loss of $99.1 million on sales of $40.2 million, down from $114.6 million in the year-earlier quarter.

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